5 Automotive Tool Franchises
Franchise opportunities in auto repair are on the rise. The market was worth 691.7 billion in 2020. Those numbers are expected to reach 828.6 billion in 2023. And that means a corresponding jump in the need for professional tools. Mac Tools is just one of the names you might recognize for their mobile franchises. They are known globally and in states like Ohio where they have a primary distribution center. If you’re interested in becoming a franchise owner read on. There’s opportunity around the world.
What is an Automotive Tool Franchise?
The franchiser supplies professional mechanics with equipment, storage, and premium tools. The franchisee service, deliver and sell tools using mobile tool stores. This franchising industry also markets professional tools.
The Automotive Tool Market in 2023
Professional mechanics use a variety of power tools that will fuel their services. In fact, the increasing demand for this type of equipment in the automotive industry is expected to grow to $42.7 billion by 2030. The need for industry-leading tools is on the rise this year. Even last year the power tool market was worth $32.2 billion. These businesses provide convenient services that make them profitable.
Why You Should Consider an Automotive Tool Franchise
Becoming an owner in this space has advantages. The following are five of the reasons why you should consider one of these businesses. Some of the names you’ll read about further down began franchising their own line years ago. Their professional services have made them well-known in the automotive industry.
Mobile Franchises Let You Scale Up
These types of mobile franchises can start out in a van. You can sell tools while avoiding insurance, tax, and paying utilities. Franchisees can grow their business and scale up. The Snap-On name lets your purchase a number of different items. Look at their available hand tools and tool storage options.
They Strengthen Customer Relationships
Mobile franchise opportunities like these strengthen customer relationships. Owners can deal with clients on a routine basis. Building relationships this way means more sales for the product line. That includes the tools and other equipment. It’s a good deal for a franchise owner.
There’s Flexibility With These Franchise Opportunities
Franchises allow you to have time to do outside things. These businesses will let you sell tools and do the other things you love. The franchise system generally lets you set your own hours to sell quality tools.
Customers who might need hand tools or assorted air tools might be pressed for time. These mobile franchises can bring them directly to the customer. That means more sales for your enterprise. The Mac tools business model even has a student technician program.
There are Low Startup Costs
These types of franchises don’t require renting space in a building. If you’re filling a truck with quality products and equipment, you’ll need less space. Consider there’s an excellent line of storage products made at Stanley Black and Decker Facilities.
Top Automotive Tool Franchise Opportunities
The entrepreneurs that sell automotive tools and related equipment do well. These enterprises have become a popular industry in the United States. Here are some of the top franchising business opportunities in the field here in the US. Some of these choices have founded manufacturing plants and locations in other parts of the world. Snap-On, for example, has been smart enough to create a European Division office.
1. Mac Tools
This is an American company that produces items in different Stanley Black & Decker facilities worldwide. The primary distribution center for these tools is located in Ohio. There’s also a partner proto-Dallas plant. That’s where the USA hardline tools line is manufactured. This outfit has been around since 1938. That was the year they started in Ohio. Shortly after that, they began franchising. Their headquarters are still in Ohio.
The Mac Tools business model uses a mobile system for distributing tools and related equipment across North America. Initial investments range from $106,026 to $259,255.
The Mac tools lineup consists of tool storage products as well.
2. Snap-On Tools
This product line has been around since 1920. Snap-On is an American company headquartered in Kenosha, Wisconsin. The Snap-On tools business model works for 4,600 franchisees globally. An owner gets access to custom software.
3. Matco Tools
Matco tools is another leader when it comes to assorted air tools for an automotive enterprise. The initial franchise fee is $8,000. Putting together all the items for an initial inventory can be expensive. Working with them can set you back between $50,000-$84,000. Matco tools have an excellent line. Check out the tool storage and hand tools in their shop equipment catalog. They were founded in 1946.
Their manufacturing plant is in Jamestown, NY. That’s where they make toolboxes. The Mac tools line consists of many competing items.
4. Cornwell Tools
This is an employee and family-owned series of mobile franchises. The company started in the automotive and other tool segments in 1919, they’ve been selling high-quality tools with a mobile model to customers since 1977. They offer shop equipment and mobile franchises including modern software like the iron businessman network. This is a solid company with an excellent business model. This company still makes hardline tools in the USA.
This company has been serving customers since 1972. There’s an initial franchise fee of $28,500. The total start-up cost to purchase everything is $68,000. That includes tools and a truck. This company offers a personal business coach.
How to Choose the Best Franchise to Set Up Your Automotive Tool Company
Ready to start selling tools for a top company like Snap-On? Here are some things to consider before you start your own line.
A Proven Sales Record
You need to pay some money to get involved with any company that sells tools. That includes a franchise fee. Mac tools and other top names markets professional tools but you’ll still need to look for proven sales records. Create a list of top earners.
A Good Brand Name
You’ll want to sell quality hand tools and other varieties. Their name should have a reputation for quality like Snap-On. Find out when the company was founded.
Find out about the competition. If you’re considering buying into a Mac line, find out if Matco tools has a manufacturing plant located close by.
Support and Training
These industries usually supply some kind of support and training when you’re selling your own line of quality tools under their name. Look for sales, training and financial assistance that can help with franchise fee costs.
How Much Does It Cost to Open an Automotive Tool Franchise?
The total investment for a Snap-On business is between $169,223 and $382,235. The brand is a good example because it was founded in 1920. The franchise fee is between $80,00 and $16,000.
The Mac tools line consists of a manufacturing plant located in Allentown Pennsylvania. The total investment here is between $109,000 and $250,000. They have a main office in Ohio.
Is an Automotive Tool Franchise Profitable?
Yes, an automotive tools franchise can be profitable. As of 2021, the median franchise sales for Mac tools was $440,474.
Image: Envato Elements
This article, “5 Automotive Tool Franchises” was first published on Small Business Trends